Builders Praise HST Transition Rules
Feb 20, 2012
(News Release) VICTORIA — The B.C. government’s new HST transition measures have received a warm welcome by the Victoria chapter of the Canadian Home Builders Association (CHBA).
“This will help restore tax certainty and consumer confidence in the new home building industry,” says CHBA president Cam Hayward.
“Consumers were waiting to see how the transition from the HST back to the PST would impact their costs. We anticipate the new $850,000 threshold and $42,500 rebate will encourage consumers to move forward on the purchase of a new home.”
The HST issue was a significant factor in a 10-year low for single-family housing starts in 2011 for Greater Victoria. Much of this was due to the tax uncertainty created by the HST referendum, resulting in a reduction in housing prices and a soft market.
Clarity of the transition rules should increase consumer demand, housing starts, and employment. That said, applying the rebate to vacation homes in the CRD would have been an additional welcomed measure.
“We believe there is a lot of pent-up demand for new housing, says CHBA executive officer Casey Edge. “Consumers and builders have been waiting for tax certainty provided by this announcement. We look forward to stronger housing starts in the coming months.”